The Center plans to remove the mandatory requirement to wash coal before it is transported to thermal power stations.In a discussion note, the Ministry of Environment, Forest and Climate Change (MoEFCC) suggested that coal wash should be done away with as it does not reduce the ash content of coal.
In 2014, as part of its commitments on climate change, the Government made it mandatory for all thermal units beyond 500 km from the coalmine to be supplied with coal wash. This was done in line with India 's position in the climate change negotiations-not to reduce coal consumption, but to focus on emissions control.
MoEFCC, in its guidelines issued the same year, stated that "Power stations located between 500 and 750 km would supply coal with ash content not exceeding 34% on a quarterly average from 1 January 2016." MoEFCC therefore directed the coal companies to supply washed / blended or beneficiated coal.
The Ministry of the Environment, Public Health and Consumer Policy has now, in its most recent note, stated, "In the overall scheme of coal, mine, laundry and power plants, the extent of the ash content in the coal mine remains the same." The Business Standard reviewed the Note. According to industry calculations, coal wash improves the quality of coal by reducing the ash content to an average of 33% from the previous 40-45 for Indian coal.
The note was prepared in consultation with the Ministry of Coal, Power and Niti Ayog. Accepting that coal wash does not help to reduce emissions, the Ministry of Energy said that "coal refuses from the laundry sector to find its way into the market for industrial use and create pollution." The Ministry of Coal said that coal wash could not meet its intended objective as "it merely locates pollution around coal mines that would otherwise have been spread over larger areas."
The Union Ministry of Power also pointed out that the process of coal washing is cumbersome and costly. It also said that "washing also leads to a reduction in the calorific value of coal."
Instead, the Ministry of Power fought for pollution control technologies in power generation units. In accordance with the guidelines of the Central Pollution Control Board, the installation of emission control systems requires plants with a capacity of nearly 50 gigawatts of thermal power. As most privately owned generators have missed the 2017 deadline, the new deadline is 2019-2022.
Senior executives in the power sector have argued that emission control technologies, such as FGD, installed by power stations and coal wash, are not the same and have different purposes. "In spite of being made to pay a higher price, most thermal stations do not get washed coal. FGD technology is also more expensive than the coal washer, "the executive said.
However, the Ministry of Coal claimed that Coal India and its subsidiaries have significantly improved supply over the years in terms of size , quality and extraneous material. This, it said, would significantly reduce the wear and tear of all related equipment.
A senior executive at NTPC, India's largest power generator, said their units had coal with ash content ranging from 30-40 per cent from Coal India.
In its comment to the note, the Ministry of Coal also stated that it would be beneficial to use raw coal instead of washed coal. "With the use of supercritical technology in power plants, technological improvement to reduce emissions, unwashed coal can be used efficiently and economically using washed coal, making power generation more costly," said the Ministry of Coal.
The MoEFFC asked Niti Ayog and TERI to jointly prepare a policy report on the proposal.
In 2017, Coal India's 'Vision 2030' report, which analyzed long-term trends in the coal sector, stated that it would undertake coal-fired washing capacity in the public-private partnership (PPP) mode. Of the 18 coal washers planned by Coal India under the PPP, however, only two came up for the same after a decade of tendering.
